The Federal Reserve announced another major stimulus plan and it effects real estate industry in some good ways. First of all it was larger than expected ad its open ended. The Federal Reserve has agreed to purchase additional agency mortgage-backed securities at a pace of $40 billion per month and if labor market does not improve substantially, the Fed said it will continue the level of purchasing increase it until improvement is achieved in a context of price stability.
The two previous rounds of quantitative easing did boost asset prices appreciably but those increases weren’t sustained when the stimulus ended which limited the chance for generating economic growth. Q3 seems to be open ended and more flexible than what was expected because the ongoing flow of $40 billion/month is a significant amount of open ended stimulus.
Contact a local Q10 Capital office today to source financing for your next project.
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